Spike in complaints over shady debit orders - banking ombud

The Ombudsman for Banking Services (OBS) says it has recorded a sudden influx of complaints and queries related to unauthorised debit orders.

Ombudsman Reana Steyn explains that rise has led to unauthorised debit orders being categorised separately in reports by the organisation.

Read: Banking ombud on fraud trends (and how 'tap-and-go' contactless cards work)

Steyn argues that banks are working to combat the fraudulent activity by implementing tools designed to help protect consumers, such as the DebiCheck system.

It is getting more and it's especially worrying for consumers who lose money and have to spend the time to get it reversed and recovered.

Reana Steyn, Ombudsman for Banking Services

It's across the board where we see these rogue users entering the market trying to make a quick buck.

Reana Steyn, Ombudsman for Banking Services

Banks are processing 50 million debit orders per month. That's a lot of transactions to just suddenly change the systems but measures are being put in place.

Reana Steyn, Ombudsman for Banking Services

Also read: Consumers soon able to authenticate debit orders before being processed

The ombud has encouraged consumers to check their bank statements regularly and make sure they understand all their transactions.

She adds that consumers should report fraudulent debit orders to police in order to clamp down on scammers.

Steyn says her office will continue to take action against any banking officials guilty of maladministration or inaction over unauthorised debit orders.

Take a listen to her explain the process entailed when reporting complaints to the ombud:


This article first appeared on CapeTalk : Spike in complaints over shady debit orders - banking ombud


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